ESG

Environment Social and Governance (ESG) at Sohar International

At Sohar International, our commitment to business sustainability guides every strategic decision as we grow beyond local markets and strengthen our international presence. We define sustainability as; the most efficient and responsible use of all resources including financial, human, technological, and natural, to create long-term value for all stakeholders.

Central to this vision is our robust Environmental, Social, and Governance (ESG) framework. We’re proud to be the first bank in Oman to establish a dedicated ESG function, reflecting our leadership in sustainable investments and financing.

We actively support sustainable investments by channelling capital toward projects that drive positive environmental and social outcomes as well as commercially feasible through various funding options such as green funds, clean energy financing, socially responsible lending, or ESG-aligned asset management. Our goal is to enable inclusive economic development while reducing risk and unlocking growth opportunities in emerging sustainable sectors.

By embedding ESG into our banking model, Sohar International empowers individuals, businesses, and communities to thrive in a changing world, locally and globally.

ESG Governance

The Sultanate of Oman is advancing towards a more sustainable future.  It has embedded sustainability within its Oman Vision 2040, and in 2022 announced its commitment to reaching NetZero Emissions by 2050.

Foreseeing this focus, Sohar International were first movers in establishing an ESG function (and until today is the only Bank with a Head of ESG).  This was in recognition of the critical role the Bank (and the financial services sector) can play in enabling and supporting the Sultanate’s commitment to sustainable and inclusive economic development. 

The ESG Function has been granted the highest level of accountability of the function, reporting directly to the Chief Executive, and indirectly to the Board of Directors through the Executive, Nomination and Remuneration Committee.

The ESG Function at Sohar International is tasked with developing and implementing ESG across the Bank.

Sohar International’s ESG Approach

Our ESG approach is guided by our ESG Framework reflects a deep institutional commitment to responsible financing, sustainable development, and stakeholder trust. Built on internationally recognized standards and endorsed by both the International Finance Corporation (IFC) and the bank’s executive leadership, this framework integrates policy, process, and purpose into a cohesive business strategy. 

1. Policy Foundation

Our ESG Policy sets the tone for ethical conduct, environmental stewardship, and inclusive growth. It guides decision-making across all business lines and ensures alignment with global principles such as the UN Sustainable Development Goals (SDGs), Oman vision 2040, MSX ESG guidelines, international ESG standards and frameworks (GRI & IFRS), and IFC Performance Standards.

2. Sustainable Financing Framework

Through our Sustainable Financing Framework (SFF), we channel capital toward projects that deliver measurable environmental, social as well as economic impact. This includes green lending, renewable energy financing, and sustainability-linked instruments all governed by transparent eligibility criteria and impact metrics.

3. Environmental & Social Management System (ESMS)

Our IFC endorsed ESMS operationalizes ESG commitments through rigorous due diligence, risk screening, and monitoring protocols. It includes sector-specific checklists and performance benchmarks, ensuring that every transaction meets international environmental and social safeguards.

4. Governance & Oversight

Governance is embedded at every level from board oversight to CEO endorsement. ESG risks and opportunities are integrated into the bank’s strategic planning, with clear accountability mechanisms and cross-functional coordination.

5. Stakeholder Engagement

Sohar International maintains open and inclusive dialogue with clients, regulators, investors, and communities through its occasional double materiality assessments. Feedback loops inform the bank’s ESG evolution, and transparency remains central to our reporting and disclosures.

The ESG Framework maps out how ESG is woven into every part of our operations, zooming in on the most material ESG issues. Our ESG Framework is living and breathing and will evolve as market dynamics shift and stakeholder needs change.

As we advance, ESG will continue to be at the heart of our corporate strategy, driving us toward sustainable growth and positioning Sohar International as a sustainability leader in banking in Oman and beyond.

Sohar International has made great strides in relation to ESG integration, but we recognize we have a long way to go – we will continue our efforts to mainstream ESG.